Khalifa Fund aims to boost SMEs

Abu Dhabi: The Khalifa Fund for Small and Medium Enterprises (SMEs) is working on the establishment of a new venture capital fund, a senior official said on Monday.

The new fund is aiming at providing new mechanisms and instruments for developing the SMEs segment, with special focus on start-up projects.

The venture capital fund will be providing entrepreneurs with loans or equity, according to the manner set by the studies that are currently underway.

"The size of the fund will be between Dh300 million and Dh500 million, and the studies will determine that, but most likely we will settle for Dh300 million," Hussain Jasem Al Nuwais, chairman of Khalifa Fund, said.

Khalifa Fund charges zero interest rate on loans and financial arrangements up to Dh1 million of finance, and 1 per cent for facilities above that figure and less than Dh5 million.